TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2011 in case of professional services is tds to be deducted on fees excluding the amount of service tax? as far as i know this was required only in case of rent ?

CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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20 June 2011 TDS is to be deducted inclusive of service tax.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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20 June 2011 Kindly note that in all cases you have deduct Tax at source on Gross amount of the bill i. e including service tax. If the bill includes expenses also then the TDS is to be deducted on expenses also. No TDS will be deducted for expenses if a separate bill is submitted to the company for reimbursement of expenses but the expenses must be supported with bills. If the fee is divided into service and expenses which is not supported with the bills then the TDS is to be deducted on the entire amount with the limit of aggregate payment of Rs. 30,000/- in a year for professional services.

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